SEBI Grade A Current Affairs — 15 June 2026

SEBI Chairman Tuhin Kanta Pandey announced at ET NOW Markets Summit 2026 that SEBI will issue comprehensive guidelines on responsible use of artificial intelligence in capital markets. The framework addresses AI benefits like improved surveillance, risk assessment, fraud detection, and investor servicing while tackling risks including opacity, bias, data protection, cybersecurity, and accountability. SEBI will integrate IOSCO's AI supervisory toolkit into its strategy for regulated entities.

SEBI's AI guidelines represent a proactive regulatory approach to emerging technology in financial markets. The initiative acknowledges AI's dual nature - while it can enhance market surveillance, automate compliance monitoring, improve risk assessment models, and detect fraudulent patterns more efficiently than traditional methods, it also poses significant regulatory challenges. Key concerns include algorithmic bias affecting fair market access, lack of transparency in AI decision-making processes, data privacy violations, cybersecurity vulnerabilities, and accountability gaps when AI systems make erroneous decisions. The integration of IOSCO's international toolkit ensures global regulatory alignment. This move positions India among forward-thinking financial regulators globally, similar to EU's AI Act and SEC's technology governance frameworks. The guidelines will likely cover algorithmic trading systems, robo-advisory services, AI-driven research platforms, and automated compliance tools. For capital market participants - brokers, asset managers, exchanges - this means mandatory disclosure of AI usage, risk management protocols, and audit trails. The timing coincides with increasing retail investor participation through digital platforms and growing institutional adoption of AI for portfolio management and market analysis.

JM Financial AMC's Pandya highlighted that tax exemptions on mutual fund investments could enhance returns for investors amid current market volatility. However, he emphasized currency stability remains crucial for sustained growth. With foreign investor outflows exceeding $10 billion in recent months and rupee declining against dollar, fund managers stress need for policy measures addressing both fiscal incentives and macroeconomic stability to maintain investor confidence in Indian markets.

JM Financial AMC's perspective reflects broader concerns facing Indian asset management industry during current market turbulence. As foreign institutional investors withdraw funds due to geopolitical tensions and global monetary tightening, domestic mutual fund industry seeks policy support through tax rationalization. The currency stability concern stems from rupee's depreciation impacting foreign investor sentiment and portfolio returns. Tax exemptions on mutual fund investments, particularly ELSS and equity funds, could incentivize domestic savings channeling into capital markets, reducing dependence on volatile foreign flows. However, currency weakness erodes foreign investor returns in dollar terms, making tax benefits insufficient without broader macroeconomic stability. This highlights the dual challenge for SEBI and government - creating attractive investment environment through fiscal measures while maintaining currency confidence through monetary policy coordination. The statement underscores how asset management companies view policy framework as critical for industry growth, balancing investor returns with systemic stability concerns that affect market depth and liquidity.